Helping to maximize your retirement: Why a comprehensive annuity review is essential

Many individuals overlook the importance of reviewing their annuity plans. If you have never evaluated your annuity, or if it has been years since you last reviewed it, now is the time to make sure it aligns with your financial goals. If your financial goals have changed, your annuity may need to change too. Depending on when—and why—you purchased the annuity, today’s options might offer more advantages than they did even a few years ago.

Understanding your evolving financial goals

Start by considering your objectives for the annuity. What were your goals when you initially purchased it, and how have they changed? For example, if you purchased the annuity in your 50s as an accumulation vehicle, your focus may shift to using it as a source of income as you approach retirement in your early 60s.

In addition to determining your needs, it’s also important to consider interest rates, especially with today’s higher rates and lower annuity fees. Once you’ve considered your goals, you’re ready to review your coverage.

Exploring additional benefits of annuities

Annuities are valuable tools that provide key benefits that go beyond guaranteed income:

Funding a long-term care plan: New riders and products offer an additional benefit for long-term care, without the hassle of extensive underwriting.
Tax-deferred growth: Annuity earnings grow tax-free until withdrawal, allowing you to defer taxes and spread the impact over time.
Protection from market volatility: Fixed annuities offer guaranteed returns, regardless of how the market performs. You are protected from the downsides while still earning interest on your money, and with current interest rates, that can be a significant benefit.
Tax-free rollovers: With a 1035 exchange, you can easily switch from one annuity to another without causing a taxable event.

Of course, each annuity has its own strengths. If your current annuity doesn’t offer these benefits and your needs have changed, it may be worth revisiting your contract.

There’s no risk to reviewing your annuity

Just as with other areas of your financial plan, it’s important to stay up to date on your annuities. Whether you have older qualified plans from an employer, questions about securing income in retirement, funding potential long-term care needs, or simply want to take the opportunity to earn more, there’s no downside with an annuity review.

If your annuity is still performing well, you’ll gain financial confidence knowing you’re on track. If not, we can help structure a plan with no additional out-of-pocket costs, allowing you to take advantage of today’s interest rates and products. Contact me or another one of our Kaufman Rossin Insurance Services professionals today to guide you through your options and help you find the best strategy for your financial goals.

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Please consider the investment objectives, risks, charges, and expenses carefully before investing in Variable Annuities. The prospectus, which contains this and other information about the variable annuity contract and the underlying investment options, can be obtained from the insurance company or your financial professional. Be sure to read the prospectus carefully before deciding whether to invest. The investment return and principal value of the variable annuity investment options are not guaranteed. Variable annuity sub-accounts fluctuate with changes in market conditions. The principal may be worth more or less than the original amount invested when the annuity is surrendered.